When observing a graph I take in the whole scenario, including a stock's historical long term picture along with its recent daily activity. Here's the report:

Since the early days of 2000 ECU has been basically controlled by its 200 day moving average line. Once the average starts turning up or turning down it sets the stage for ECU to follow it until such time that it blows off to the upside or a bearish trend just runs out of gas to the downside.

The current mode of the 200 day average is still declining and today finds itself at 1.91 on the ECU chart. Daily prices in past days have generally been subdued from attacking this moving average line seriously. There are actually people out there that trade this line religiously. If a share's price approaches it they sell it, most probably short. It can be declining or it can be horizonal.

On the other side of the coin, if a stock is above this important moving average the same group will buy it as it approaches an ascending or horizonal condition.

During the 2001 to the late 2003 period this average basically contained upward and downward movements in ECU while it was near horizonal. These were times when the shares were selling for in the 10 cents area or so or a little higher. The five year chart I am scrutinizing is not to the liking of my eyes.

In late 2003 after resting on the average, ECU started to push higher along with the 200 day turning up. Sometime in March of 2004 ECU made its high for the year at about 40 cents, up from where it started at of around 10 cents. Although the 200 day followers bought ECU as it approached the advancing line if April, May and June it gave way in about October in 2004 at about 40 cents when ECU's price sold below it. The shares sold down later to the 25 cents area or so and remained in a trading range between that low and the 40 cents area during the next 12 months.

Through late August of 2005 or so the stock remained below the line until prices punched through it at about 40 cents and headed up some, being contained by the 50 cent level first for three months. Following in Jaunuary of 2006 with the 200 day already ascending. ECU's shares exploded during the next 10 weeks or so reaching just over $3.40. The share price became extremely extended above the 200 day average and it took most of 2006 for the average to catch up to the share's price at $2.60 in October.

The last rallying phase during the 2006 major advance began when a decline made contact with the ascending average at about $2.85. The very short term rally ended at $3.40 in Jaunuary of 2007. In late January the 200 day moving average was broken when ECU's prices collapsed passing the average at $2.90 and ending up at $2.20 in late February.

Since late in January of 2007 ECU has been in a declining phase being contained under the descending 200 day average which is at $1.91 currently with the stock's last sale of $1.84, up 2 cents on the day.

Some of these 200 day followers are real sharp people and in my opinion are preparing for a reversal of this important and widely followed technical tool.

Aside from the 200 average there are other longer term averages that can aid in forecasting directional changes of this one. They are the 1000 day and 5000 day moving averages. The only average of the two that is available is the 1000 day average. This average is currently located at $1.55 on the ECU chart and is ascending which is positive over all. During May and June this average was breached when prices traded below for the period. With ECU's last sale of $1.84, the shares are comfortably above this average again. Selling below an ascending moving average and closing above is very bullish. Also indicating that a 200 day reversal is in the cards is the fact that an extreme oversold price of $1.25 or so from 2007 was successfully tested during the time that ECU's price was beneath the 1000 day average.

Looking closer at the strong possiblility that a new advancing 200 average is in the making is the fact that over the past week or so ECU has been rallying off of its 100 day average line which currently is located on the chart at $1.70. I see one member, Blackmont, picking up shares there during the day and the firm followed rising prices with more puchases. If I were a professor and this were a class, Blackmont would be given an "A" for effort today.

Remember Blackmont was buying ECU today while the precious metals sector was under attack again from the PPT. This, too, is impressive as I feel these orders originated from a real player that has done some research on what makes this stock tick.

The comments are presented here in an attempt to aid people in understanding how some of the numerous people in the market think and trade. This is not a recommendation on the stock but a study in accepted probability by some and how those people interact with stocks and their prices using those probabilities.